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1. Effective date

This policy is effective as of July 1, 2002.

2. Preamble

This policy is one element of the Federal Contaminated Sites Management Framework,
which consists of a group of Treasury Board policies and best practices advisories,
as described in the Appendix to this policy.

3. Policy objectives

rational priority setting for investment choices through a systematic identification
and categorization of risks and the development of management plans;

early focus on reducing the risks to human health, safety, or the environment;

optimal use of financial and technological resources through the use of
a risk management
approach;

the development of innovative strategies to recover the social and economic
value of federal "brownfield"
sites; and

the development of best practices related to the
management of contaminated
sites.

Note: For interpretation of this policy in the Province of Quebec, "real property"
means "immovable" within the meaning of civil law of the Province of Quebec and
includes the rights of a lessee in respect of such an immovable.

4. Policy statement

It is government policy that federal departments and agencies ensure sound environmental
stewardship of federal real property in their care by avoiding contamination and
by managing contaminated sites in a consistent and systematic manner that recognizes
the principle of risk management and results in the best value for the Canadian
taxpayer.

5. Application

This policy applies to all departments under section 2 of the FinancialAdministration Act unless exempt by other acts or regulations.

6. Policy requirements

Departments and agencies will make best possible efforts to ensure that
occupants or any other persons using property under their administration avoid
contaminating the property or the environment.

Departments and agencies are responsible for remediation of negative environmental
effects resulting from their operations or occupancy of real property, including
property owned by other departments and occupied by the department or agency
as a tenant unless otherwise exempted by a lease or contract.

Departments and agencies should use a risk management approach to determine
what action should be taken at individual contaminated sites.

Where remediation
of federal real property is undertaken, departments and agencies are to set
remediation objectives in accordance with the most applicable of the three methods
developed by the Canadian Council of Ministers of the Environment (CCME):

Method 1: Follow CCME Environmental Quality Guidelines, as amended from
time to time, and, where applicable, the Canada-wide Standard for Petroleum
Hydrocarbons in Soil. To the extent that such guidelines do not exist for
a particular type of contamination, or are technically or economically inappropriate
for a particular situation, departments and agencies may follow equivalent guidelines
or standards (e.g. provincial).

Method 2: Follow modified CCME Environmental Quality Guidelines where site
conditions, land use, receptors, or exposure pathways differ only slightly from
the protocols used in the development of the Guidelines.

Method 3: Follow modified CCME Environmental Quality Guidelines based on
a site-specific risk assessment, as outlined by the CCME, or equivalent, where
site conditions are unique or particularly sensitive.

In the event that federal real property is contaminated by others, where
a business case exists, departments and agencies must take action to ensure
that the costs of remediation are paid for by the party that caused the contamination.
Notwithstanding the foregoing, departments and agencies should take immediate
and reasonable action to protect the environment and the health and safety of
persons. In the event that the responsible party is a federal department or
agency, that department or agency shall be held responsible for the portion
of the costs of remediation made necessary by its actions.

Remediation undertaken on federal real property is to be consistent with
the requirements for its current or intended federal use unless it can be demonstrated
that a more stringent level of remediation is economically beneficial to the
federal government.

When disposing of federal real property, departments and agencies will,
upon request, disclose available environmental information on the property to
potential purchasers.

Departments and agencies will develop a departmental "Contaminated Sites
Management Plan" within one year of the coming into force of this policy. These
plans are to be used to support sound decision making, and a copy of the first
plan is to be submitted to the Treasury Board of Canada Secretariat for information
purposes.

When managing contaminated sites in other countries, departments and agencies
should comply with any applicable local or host country's environmental legislation
or regulations and, where none may exist, adopt best practices to minimize harmful
effects.

7. Responsibilities

Custodian departments and agencies are responsible for the management of
federal contaminated sites under their administration and will discharge their
responsibilities in a manner that is consistent with their interest in the real
property and with the management framework for that real property.

The Treasury Board of Canada Secretariat is responsible for the establishment
and maintenance of the Contaminated Sites Management Framework and the provision
of strategic policy advice.

Public Works and Government Services Canada, as a common services provider,
is available to provide technical and management services to support government
departments in implementing their contaminated sites management responsibilities,
on a cost-recovery basis.

Environment Canada plays a leadership role by providing specialist advice
and guidance to government departments, agencies, stakeholders, and other interest
groups on the application and interpretation of federal and provincial policies,
guidelines, and programs that may relate to federal contaminated sites; promotes
compliance with regulatory requirements and guidance; serves as a liaison with
provincial and territorial governments; and develops, in co-operation with partners,
environmental quality criteria, site assessment protocols, and remediation technologies.

8. Monitoring

The Treasury Board of Canada Secretariat will determine the effectiveness of
this policy through ongoing contact with departments and agencies, consulting with
the Treasury Board Advisory Committee on Real Property, and noting audits and reviews
conducted by departments and agencies or by the Auditor General of Canada.

Appendix: Federal Contaminated Sites Management Framework

The Federal Contaminated Sites Management Framework is an integrated package
of Treasury Board policies and best practices advisories that have as their objective
the establishment of a consistent approach to the management of federal contaminated
sites. Whereas the policies set out roles, responsibilities, and requirements, the
best practices advisories provide guidance in key areas such as "Brownfields" and
the preparation of Contaminated Sites Management Plans. The existing best practices
advisories that may be considered by departments and agencies are listed below.